Sudurpashchim Province Government Faces Delays in Budget Formulation for Upcoming Fiscal Year

Dhangadhi. The Sudurpashchim Province government appears to be in a state of confusion as the process for formulating the budget for the upcoming fiscal year (2083/084) should have already commenced. With the legal deadline having passed, the provincial government's failure to determine the budget ceiling is expected to have a serious impact on the planning and prioritization of projects for the coming year.

According to the Ministry of Economic Affairs and Planning, although there was a plan to announce the budget ceiling on Friday, no concrete decision has been made yet regarding the budget allocation for each ministry. Arjun Khadka, Deputy Secretary and Information Officer at the Ministry, stated that while efforts are being made to finalize the ceiling, the size of the ministerial budgets has not yet been determined.

Generally, there is a provision to determine the revenue estimates and expenditure limits for the upcoming fiscal year by Chaitra 15. Even with the second week of Baisakh passing, the Provincial Policy and Planning Commission has been unable to send the budget guidelines and limits to the Ministry of Economic Affairs.

According to Deputy Secretary Khadka, the main reason for the delay in creating the budget ceiling is the failure to receive details of revenue sharing from the federal government on time. The provincial budget limit could not be finalized because the Government of Nepal has not yet sent the revenue sharing ceiling.

He mentioned that as soon as the details are received from the federal government in a few days, it will be finalized and sent to the Ministry of Economic Affairs.

The failure to release the budget ceiling on time is expected to affect project selection. Ministries were supposed to send budget limits to their subordinate directorates and district-level offices by Baisakh 7. With no ceiling yet, there has been no discussion on projects at the lower levels.

The Sudurpashchim Province government is set to receive a total of 8 billion 60 million 33 lakh rupees as equalization grants from the federal government for the upcoming fiscal year. This includes a minimum grant of 1 billion 89 million 34 lakh, 5 billion 82 million 50 lakh based on a formula, and 42 million 49 lakh based on performance evaluation. In addition to this, the full size of the budget will be prepared by incorporating special grants, supplementary grants, and the province's internal resources.

The failure to release the budget ceiling on time is expected to affect project selection. Ministries were supposed to send budget limits to their subordinate directorates and district-level offices by Baisakh 7. With no ceiling yet, there has been no discussion on projects at the lower levels.

Analysts argue that delays in the budget formulation process increase the tendency to select projects in a hurry. This creates a risk that projects will be selected based on influence rather than necessity, thereby reducing the effectiveness of the budget.

Former teacher Prem Dhami expressed concern that with limited time, there will not be enough discussion and debate on projects, which may result in the upcoming year's budget failing to address public expectations.

Given that the provincial government is already struggling to achieve expected success in implementing the current fiscal year's budget, this sluggishness in preparing for the next year's budget is likely to further hinder the province's development pace.